China had in February this year blocked the US move to designate Azhar as a global terrorist at UN.
The deadline for China to take action on its technical hold was till August 2.
If China would not have extended the technical hold, Azhar would have automatically been designated under the UN as a terrorist. Sources told PTI here that just before the deadline lapsed, China once again sought a three-month extension until November 2 on its technical hold on the proposal.
Last year in March, China was the sole member in the 15- nation UN organ to put a hold on India's application with all other 14 members of the Council supporting New Delhi's bid to place Azhar on the 1267 sanctions list that would subject him to an assets freeze and travel ban.
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The six-month validity of that technical hold lapsed in September and Beijing then extended it by three more months.
Sources had said that the block would not prevent India from pursuing at the world body issues of terrorism and sanctioning of leaders of terror outfits.